Scandinavian Airline SAS Gets US Court Approval for $700 Million Financing

Scandinavian Airline SAS Gets US Court Approval for $700 Million Financing
Scandinavian Airlines (SAS) airplanes are parked at the Oslo Airport Gardermoen in Norway on July 4, 2022. Beate Oma Dahle/NTB via Reuters
Reuters
Updated:

Bankrupt Scandinavian airline SAS AB on Friday said it has received U.S. court approval for $700 million of debtor-in-possession (DIP) financing from funds managed by private equity firm Apollo Global Management.

The approved credit agreement is a part of the airline’s bankruptcy protection process and its terms will be substantially similar to those announced on Aug. 14, SAS said.

Long-struggling SAS, ravaged by the pandemic and pressured by low-cost rivals, sought bankruptcy protection in July as pilots went on a two-week strike, hoping to emerge within nine to 12 months as a more competitive airline.

Some analysts have said that Apollo could become a major shareholder in SAS by converting the loan to equity at the end of the Chapter 11 process.